Further environment speaks for dollar
By
👤Erste Group
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The EURUSD has remained within a relatively narrow range over the past few weeks. The environment, on the other hand, has been volatile, although the situation has calmed down recently. So far, the EURUSD has not reacted strongly to the eventful development of the Brexit negotiations. However, with the closing date approaching and the ongoing uncertain outcome of the negotiations, the volatility of the EURUSD could also rise. In our view, however, sustained effects on the exchange rate would only be expected if a hard Brexit were to occur. Then the dollar would strengthen more strongly and for longer than we currently assume. However, we assume that an unregulated withdrawal of the United Kingdom from the EU can be avoided. The most important determinant for the EURUSD for us therefore remains the development of interest rates in the two economic areas, which in our view continues to speak for the dollar for the time being.
By
👤Erste Group
